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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Investor2 who wrote (5512)6/1/1999 1:48:00 AM
From: Carl R.  Read Replies (1) of 15132
 
The big question is whether or not your comparisons are appropriate. At first glance it seems reasonable to compare the PE of McDonalds in 73 with the PE of McDonalds today, but you have to remember that the examples were the hot growth stocks of 1973. Perhaps you should be comparing the PE's of McDonalds in 1973 to AOL today. Then the conclusions would obviously be different. But which comparison is correct?

Carl
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